The Fourth Targeted Product/Market Group will be design and production of watches with highly complicated

mechanisms. We have access to complicated watch movements already produced but being offered to Mr. Loke

for exclusive use in his brand of watches. We will work with Lunesa of Switzerland to produce perpetual calendar

modules to fit onto our existing movement. They will also supply a minute repeater, Grand & Petite Sonnerie,

Chronograph and Split Chronograph. For years 4-5 we will work on manufacturing these movements here in the

U.S. We are currently discussing a joint venture with Lunesa to manufacture complete movements in-house here

in the U.S.

HW Tourbillon. Mr. Loke is developing and designing 2 Tourbillon escapements in his own caliber, which can be

used with other complications such as power reserve, calendar, center sweep hand, and other developments for

the future. The Tourbillon was invented by Abraham Louis Breguet in 1795 and patented in 1801. It is a technical

and optical marvel which was designed to eliminate another influence that affects accurate timekeeping —gravity.

Placing the heart of the watch (the balance wheel, escape wheel and lever or détente) into a cage and revolving

the cage neutralizes the effect of compensating for positional error. If a watch was placed with the winding crown

facing left, it would keep a specific time; but if it was turned and placed so that the crown was up, it would keep a

different time. Thus, all vertical positions are affected differently due to gravity on the steel parts. Breguet decided

to put the escapement and the balance wheel into a cage and rotate it. The effect was that it compensated for

gravity and the time variations. By always having the heart of the watch in rotary motion, it averages out the error.